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An economic analysis of thinnings and rotation lengths in the presence of natural risks in even-aged forest stands

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  • Halbritter, Andreas
  • Deegen, Peter
  • Susaeta, Andres

Abstract

A harvest scheduling model when the natural risk is not only dependent on the age of the forest stand but also on the stock density is presented in this paper. In addition, damages to human lives, human health and infrastructure caused by natural risks are incorporated. Using a conditional current value approach, the optimal thinning and rotation length conditions are determined and used for the qualitative analysis of the course of the optimal volume path under different risks. Also the impacts of external variables such as stand age, interest rate, timber price and damages to human lives etc. to the optimal harvest schedules are derived. The results and dependencies are discussed in detail and compared to findings presented in the literature.

Suggested Citation

  • Halbritter, Andreas & Deegen, Peter & Susaeta, Andres, 2020. "An economic analysis of thinnings and rotation lengths in the presence of natural risks in even-aged forest stands," Forest Policy and Economics, Elsevier, vol. 118(C).
    • Handle: RePEc:eee:forpol:v:118:y:2020:i:c:s1389934120301027
    DOI: 10.1016/j.forpol.2020.102223
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    References listed on IDEAS

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    1. Halbritter, Andreas & Deegen, Peter, 2015. "A combined economic analysis of optimal planting density, thinning and rotation for an even-aged forest stand," Forest Policy and Economics, Elsevier, vol. 51(C), pages 38-46.
    2. Morag F. Macpherson & Adam Kleczkowski & John R. Healey & Nick Hanley, 2018. "The Effects of Disease on Optimal Forest Rotation: A Generalisable Analytical Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(3), pages 565-588, July.
    3. Kelly M. Cobourn & Gregory S. Amacher & Robert G. Haight, 2019. "Cooperative Management of Invasive Species: A Dynamic Nash Bargaining Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1041-1068, April.
    4. Susaeta, Andres & Carter, Douglas R. & Adams, Damian C., 2014. "Impacts of Climate Change on Economics of Forestry and Adaptation Strategies in the Southern United States," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(2), pages 1-16, May.
    5. Patrice, Loisel, 2011. "Faustmann rotation and population dynamics in the presence of a risk of destructive events," Journal of Forest Economics, Elsevier, vol. 17(3), pages 235-247, August.
    6. Deegen, Peter, 2016. "Private and public timber production: How markets and political institutions matter," Forest Policy and Economics, Elsevier, vol. 72(C), pages 56-65.
    7. Coase, R H, 1981. "The Coase Theorem and the Empty Core: A Comment," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 183-187, April.
    8. Petucco, Claudio & Andrés-Domenech, Pablo, 2018. "Land expectation value and optimal rotation age of maritime pine plantations under multiple risks," Journal of Forest Economics, Elsevier, vol. 30(C), pages 58-70.
    9. Susaeta, Andres & Carter, Douglas R. & Chang, Sun Joseph & Adams, Damian C., 2016. "A generalized Reed model with application to wildfire risk in even-aged Southern United States pine plantations," Forest Policy and Economics, Elsevier, vol. 67(C), pages 60-69.
    10. Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2005. "Not Getting Burned: The Importance of Fire Prevention in Forest Management," Land Economics, University of Wisconsin Press, vol. 81(2).
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    Cited by:

    1. Koster, Roman & Fuchs, Jasper M., 2022. "Opportunity costs of growing space – an essential driver of economical single-tree harvest decisions," Forest Policy and Economics, Elsevier, vol. 135(C).
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    3. McTaggart, Ewan & Megiddo, Itamar & Kleczkowski, Adam, 2023. "The effect of pests and pathogens on forest harvesting regimes: A bioeconomic model," Ecological Economics, Elsevier, vol. 209(C).
    4. Félix Bastit & Marielle Brunette & Claire Montagne-Huck, 2021. "Earth, wind and fire: A multi-hazard risk review for natural disturbances in forests," Working Papers of BETA 2021-25, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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